Total Revenue

~10% decline (from $635.76M to $571.6M)

Total Revenue dropped by approximately $64.16M, driven largely by a 13% fall in Print and Commercial Revenue and a 6% decline in Digital Segment Revenue. This reflects ongoing challenges in legacy print operations paired with softer-than-expected digital performance compared to prior growth trends in digital revenues. " "

Digital Segment Revenue

~6% decline (from $267.5M to $250.4M)

Digital Revenue fell by roughly $17.1M despite previous periods’ growth, possibly due to a tougher competitive digital advertising market and overall macroeconomic pressures reducing local digital ad spending. This decline contrasts with prior robust digital performance and suggests that earlier momentum may have been undercut by external market dynamics. " "

Print and Commercial Revenue

~13% decline (from $368.26M to $321.2M)

Print and Commercial Revenue decreased by about $47.06M, reflecting continued declines in print advertising and circulation revenues—the same trends that were observed in FY 2024. Reduced local and national advertising demand, lower subscriber volumes, and a shifting focus away from print media contribute to this steep decline. " "

Geographic Performance – Domestic Gannett Media

~11% decline (from $495.72M to $440.07M)

The Domestic Gannett Media segment saw an 11% reduction, largely due to the revenue contraction from both print & commercial and digital segments. Past periods demonstrated similar underlying challenges in legacy markets and slower local digital adoption, which have carried forward into the current period. "

Operating Performance

Operating Income of $9.78M with a Net Loss of $7.33M

Although operating income was positive at $9.78M, the overall net result turned negative due to margin pressures from increased non-operating and restructuring costs. This outcome is critical given previous periods’ efforts to control costs, suggesting that higher debt refinancing expenses or integration-related costs have now begun to impact bottom-line performance more significantly. "

Revenue Trends

FY 2025

“Same‐store revenue trends: Q1 2025 trends are expected to be in line with Q4 2024, with sequential improvement beginning in Q2 and overall growth by year’s end. " ”

“Revenue Trends: Expectation of same‐store revenue growth improvement as the year progresses, with stronger performance compared to 2024 trends. " " " " " " " " ”

no change

Adjusted EBITDA

FY 2025

“Expected to grow year‐over‐year in 2025, driven by improving revenue trends and ongoing cost management. " ”

“Expected to be higher in Q2 than Q1, with year‐over‐year performance similar to Q1; growth anticipated in the second half of the year. " " " " " " " " ”

lowered

Free Cash Flow

FY 2025

“Expected to grow by more than 40% for the full year 2025, despite a $10 million increase in capital expenditures. " " ”

“Expected to be similar in Q2 to Q1 (with Q1 at $10.2M) and then more substantial in the second half, forecasting substantial free cash flow growth for 2025. " " " " " " " " ”

no change

Debt Reduction

FY 2025

“Incremental debt paydown of $50–60 million expected in the first half of 2025, supported by asset sales and scheduled amortization payments. " ”

“Expectation to repay over $125 million in debt in 2025 through amortization, asset sales and free cash flow generation; aim to achieve a first lien net leverage approaching 2× by year-end. " " " " " " " " ”

raised

Digital Subscription Business

FY 2025

no prior guidance

“Confidence in the growth potential of its digital subscription business for 2025 and beyond, despite Q1 challenges. " " " " " " " " ”

no prior guidance

Print Business

FY 2025

no prior guidance

“Expectation of continued sequential improvement in print and commercial revenue trends for the rest of the year, supported by efforts to enhance the subscriber experience. " " " " " " " " ”

no prior guidance

Digital Marketing Solutions (DMS)

FY 2025

no prior guidance

“Expectation for DMS revenue performance to return to near flat in Q2, with further improvements as the year progresses. " " " " " " " " ”

no prior guidance

Operational Efficiencies

FY 2025

no prior guidance

“Plans to continue executing transformative cost reductions to create a more flexible cost structure and achieve financial objectives for the year. " " " " " " " " ”

no prior guidance

Capital Structure

FY 2025

no prior guidance

“Expectation to further improve capital structure through aggressive debt paydown and free cash flow generation. " " " " " " " " ”

no prior guidance

Overall Confidence

FY 2025

no prior guidance

“Confidence in achieving a third consecutive year of adjusted EBITDA and free cash flow growth and driving improvement in net income compared to the prior year. " " " " " " " " ”

no prior guidance

Digital Advertising Environment and Regulatory Impacts

In Q4, Q3, and Q2 2024, Gannett noted positive digital revenue growth, rising pageviews, and a strong focus on antitrust and regulatory developments (e.g. DOJ actions against Google) that validated concerns over market monopolization. " " "

In Q1 2025, the company described improving fundamentals with March as the best‐performing month; they highlighted additional monetization opportunities (AI licensing, enhanced video monetization) and viewed the DOJ ruling as a catalyst for a more competitive environment. " " "

Consistent emphasis with increased optimism and more detailed monetization strategies.

Digital Marketing Solutions (DMS) Performance and Challenges

In Q2, Q3, and Q4 2024, discussions centered on revenue challenges, customer churn, and the deployment of innovations such as the AI-powered tool Dash, along with strategic initiatives for enhancing retention. " " "

In Q1 2025, while challenges such as revenue declines and churn persisted, there were signs of sequential improvement in budget retention with new leadership and product enhancements aimed at stabilizing the segment. " " "

Ongoing challenges with gradual improvement and renewed emphasis on product innovation.

Digital Subscription Growth and Monetization Stability

Q2, Q3, and Q4 2024 earnings calls emphasized strong year‐over‐year subscription revenue and ARPU growth, underscored by personalized strategies and diversified revenue streams. " " "

Q1 2025 noted some same‑store subscription growth slowdown due to revenue reversals, but initiatives such as lifecycle marketing and local engagement underpin long‑term confidence in digital subscription growth and stability. " "

Stable long‑term growth with short‑term setbacks being addressed through targeted initiatives.

Robust Digital Audience and Diversified Revenue Streams

In prior periods, Gannett highlighted reaching high monthly visitor numbers (often around 200 million) and a diversified revenue mix via advertising, video, subscriptions, and affiliate deals. " " "

Q1 2025 reported a robust digital audience of 195 million monthly unique visitors with new revenue channels emerging (e.g. a sports vertical via Studio IX and expanded AI‐licensing partnerships). " "

Sustained strength with incremental enhancements and new channel expansions.

AI Integration, Licensing, and Product Innovation

Q2, Q3, and Q4 2024 saw the launch of AI-driven solutions like DASH, partnerships with companies such as Microsoft, and content licensing arrangements (e.g. with Reuters) aimed at optimizing campaigns. " " "

Q1 2025 built on this foundation by expanding AI integration with additional licensing deals and strategic partnerships (including with Dow Jones and Amazon’s Alexa+), and by launching new initiatives such as Studio IX to broaden monetization opportunities. " "

Evolving focus with increased integration, broader partnerships, and expanded monetization opportunities.

Financial Health: Debt Reduction, Free Cash Flow, and EBITDA Trends

In Q2, Q3, and Q4 2024, the focus was on reducing debt through repayments and refinancing, with steady improvements in free cash flow and growing adjusted EBITDA supported by cost management. " " "

In Q1 2025, Gannett continued debt reduction (reducing debt by approximately $75 million) and reported free cash flow growth of 7.6% YoY, even though adjusted EBITDA dipped due to atypical challenges—with expectations of a rebound in Q2. " "

Steady financial improvement with a temporary EBITDA dip offset by long‑term growth expectations.

Asset Sales Strategy and Its Long-Term Impact on Digital Focus

Q2, Q3, and Q4 2024 discussions focused on selling non‑strategic assets (e.g. parts of the print and commercial printing businesses) to free up cash for debt reduction and digital investments, exemplifying a strategic shift away from legacy operations. " " "

Q1 2025 indicated that the asset sales pipeline is nearly complete—with key transactions like the sale of the Austin American‑Statesman—and proceeds are being reinvested to strengthen the digital business and further reduce debt. " "

Consistent strategy nearing completion; funds are being rechanneled to accelerate digital transformation.

Macro‑Economic and Market Conditions Affecting Digital Revenue

In Q3 and Q4 2024, external conditions such as high interest rates, cautious advertiser sentiment (particularly in Home Services), and algorithm changes were mentioned as factors impacting revenue. " " "

Q1 2025 shifted the narrative by citing challenges like Google Manual Actions and describing Q1 as an anomaly with revenue reversals, while emphasizing a positive outlook driven by a favorable DOJ ruling and structural changes in the digital landscape. " "

A shift from economic constraints to regulatory opportunities, with overall optimism replacing earlier caution.

Decline of Traditional Print Revenue

Q2, Q3, and Q4 2024 acknowledged the secular decline in traditional print revenue alongside divestitures and stabilization efforts, even as cost efficiencies and enhanced subscriber experiences were pursued. " " "

Q1 2025 continued to recognize print as a declining category but noted sequential improvements in revenue trends and stressed that strong cash flow from print supports debt reduction and funds the digital transformation. "

Persistent decline mitigated by stabilization efforts and strategic leveraging of cash flow for digital investment.